Any sensible advise for 2nd home mortgage

getmore4less

You can't borrow against equity in another house you have to mortgage that house to release cash.

You need to investigate what mortgages you could get on the new place to see what LTV gives a combination of rate residual savings you want.

Why not sell the place if you can for £250k no one will pay any more.

This seems to be a short term plan < 10 years.

If the place is cash neutal renting out (remember you are borrowing and extra £250k to do ths) there is a risk you will lose money after all costs any voids or dodgy tenents.

If you plan to sell the Wales place in a few years this will have cost a fortune, stmp duty will be over £10k.

Thrugelmir

charsi16 wrote: »

The last mortgage is 140 k balance, I have 100k in offset( which i was saving ). If the property is rented I shall get 850pcm which should take care of the monthly payments on that property.

Have you considered the taxation issues in letting the property?

Only the interest element of the mortgage repayments are allowable as a tax deduction , the capital element is not. So the net profit on renting the property out , i.e rent less mortgage interest less allowable expenses (insurance, repairs etc) is taxable.

On your level of income its highly possible that part of the profit will be subject to 40% tax.

Letting property is not tax free and certainly changes the financial dynamics.